How Zcash processes transactions: public and private payments
Zcash nodes validate signed payments and miners confirm them in blocks. Transparent payments are public; shielded ones hide sender, receiver and amount.
Vahe HakobyanEditor-in-chief
Updated Oct 6, 20263 min readFact-checked
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- Nodes validate signed payments and miners confirm them in blocks.
- Transparent addresses show sender, receiver, and amount.
- Shielded addresses use zero-knowledge proofs to hide those details.
Zcash processes transactions when nodes validate the signed payment and miners confirm it in a block, much as Bitcoin does. What the public ledger shows depends on the address type you choose.
What do you need before sending?
Before you send, choose whether to use a transparent or shielded address, then confirm your wallet supports it. Not every wallet supports shielded or unified addresses. Zcash says unified addresses, introduced in 2022, receive both types.
How does Zcash process a transaction?
Zcash is modeled on Bitcoin and uses proof-of-work consensus. Your wallet signs and broadcasts the payment. Nodes validate the signature, the funds, and any zero-knowledge proof, and miners include valid payments in blocks.
- 1Sign and broadcastYour wallet signs and sends it to nodes.
- 2Validate and confirmNodes check the signature, funds, and proof. Miners include it in a block.
- 3Read the ledgerA transparent transaction shows sender, receiver, and amount. A shielded transaction hides them with a zero-knowledge proof.
What should you do after confirmation?
A transaction is confirmed when a miner includes it in a block. More confirmations make a reversal harder, so keep the transaction ID and block height.
- Save the transaction ID and block height.
- Check the confirmation count in a block explorer.
- Keep your wallet backup and private keys secure.
Frequently asked questions
A t-address is transparent, so its payments are public. A z-address is shielded and encrypts the sender, receiver, and amount.
They hide details on the chain, but a 2018 study found usage patterns could reduce the shielded pool's anonymity, though that analysis predates later upgrades.
Policies differ and can change, so check the exchange's current deposit rules. If it gives you a transparent deposit address, send a transparent payment.
It is not settled until a miner includes it in a block. An unconfirmed transaction may be dropped or replaced.
